Abstracts » Business

Is your pension shy on retiring?

Article Abstract:

The cost of pensions looks set to rise as a result of low inflation, according to a report from the Staple Inn Actuarial Society. There are wide variations in pension costs over time, and this is due to a number of factors. One of these is the economic boom which has occurred since 1975. The strength of the boom means that growth may be less strong in the future, and this, together with a drop in inflation levels, means that pensions could cost more, though investment returns are good.

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On the move, but should your pension follow?

Article Abstract:

UK pension transfers are a difficult area for financial advisers. Some people were wrongly advised to move to personal pension schemes that were not their best option and this led to problems that have deterred advisers from tackling the issue. Money transfer schemes can provide returns above inflation but final salary schemes may lose value in real terms after an employee has left a company. Pensions can be transferred into a new company scheme, which has the benefit of employers' contributions, or they can be put into a personal pension.

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Which pension fits you best?

Article Abstract:

Plans from two United Kingdom pensions providers can be compared to illustrate what investors should seek when they select a plan. General Accident Life's personal pension is compared with the with-profits pension from Equitable Life. Equitable is a mutal, while General Accident, being a proprietary company, has to pay stockholders, which Equitable does not. Proprietary companies have greater flexibility in raising funds. With-profits funds smooth over performance, but this is less important over a long period. Charges are similar and both plans are flexible.

Management, Insurance industry, Life insurance industry, American General Life and Accident Insurance Co., General Accident Fire and Life Assurance Corporation PLC (Perth, England)

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